Correlation Between Samlip General and SillaJen
Can any of the company-specific risk be diversified away by investing in both Samlip General and SillaJen at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samlip General and SillaJen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samlip General Foods and SillaJen, you can compare the effects of market volatilities on Samlip General and SillaJen and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Samlip General with a short position of SillaJen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and SillaJen.
Diversification Opportunities for Samlip General and SillaJen
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samlip and SillaJen is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and SillaJen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SillaJen and Samlip General is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samlip General Foods are associated (or correlated) with SillaJen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SillaJen has no effect on the direction of Samlip General i.e., Samlip General and SillaJen go up and down completely randomly.
Pair Corralation between Samlip General and SillaJen
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 0.59 times more return on investment than SillaJen. However, Samlip General Foods is 1.68 times less risky than SillaJen. It trades about -0.05 of its potential returns per unit of risk. SillaJen is currently generating about -0.08 per unit of risk. If you would invest 5,588,460 in Samlip General Foods on November 7, 2024 and sell it today you would lose (938,460) from holding Samlip General Foods or give up 16.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samlip General Foods vs. SillaJen
Performance |
| Timeline |
| Samlip General Foods |
| SillaJen |
Samlip General and SillaJen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samlip General and SillaJen
The main advantage of trading using opposite Samlip General and SillaJen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, SillaJen can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SillaJen will offset losses from the drop in SillaJen's long position.| Samlip General vs. AptaBio Therapeutics | Samlip General vs. Daewoo SBI SPAC | Samlip General vs. Dream Security co | Samlip General vs. Microfriend |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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